In a previous blog post, we discussed the differences between condo and apartment living – and one of the biggest differences is owning versus renting. But if we’re strictly talking condos, both choices are available. You don’t have to own a condo to live in one, as many condo owners choose to rent out their property either short-term or long-term. So if you love the idea of condo living and all the amenities that come with it but aren’t sure you’re ready to own a condo yourself, then here are a few things that might help you make up your mind.

Renting has lower, short-term costs

Real estate, at the best of times, is a huge investment. When it comes to living in a condo, ownership also has extra costs built in in the form of condo fees. Condo fees vary from building to building depending on things like amenities, landscaping, cleaning and so on, but can be quite costly with some buildings charging as much as $1000 in condo fees per month. That’s a pretty hefty payment to add on top of a mortgage! 

Condo fees go to the overall maintenance and upkeep of the building and don’t add to your equity in the property. So if you aren’t planning on sticking around for long, then owning a condo instead of simply renting one might not be the best financial choice. Yes, some of those condo fees will be reflected in your rental fees, but renting will still end up being cheaper in the short term.

Renting means you are not responsible for maintenance

One of the biggest perks to renting is that you, as the tenant, are not responsible for the main upkeep and maintenance of the residence. Those responsibilities fall to the landlord – the owner of the condo itself. Of course, it’s still up to you to treat the property respectfully and with care. But in the case of broken appliances (if included in the rental), damages to the unit, or even something as simple as the smoke detector needing new batteries, you don’t need to handle those repairs yourself. If an issue arises, all you need to do is get in touch with your landlord and wait for the problem to be fixed at no extra cost to you.

Flexibility

Condo rentals tend to have longer lease terms then apartment rentals, but even than renting allows for more flexibility than buying if you change your mind. This can be especially true in cases where you may want to downsize – perhaps your affordability level changes and you want to look for somewhere less expensive, or maybe you just aren’t sure about the city or even neighbourhood or building and would like to try somewhere new.

Fixed payments

Another benefit of renting rather than buying a condo is that you can expect stable, fixed payments. Yes, your landlord can raise the rental fees (with sufficient notice) but typically you can expect your monthly fees to stay the same. This makes it much easier for budgeting and planning your finances, which is important especially when you aren’t sure what your cash flow is going to look like in the near future.

As an owner, you don’t necessarily have that same stability. Sure, you can opt for a fixed mortgage, but there are still additional factors, such as city tax that can change at any time. That will impact the owner directly, not a renter.

When ownership might be a better choice

While there are a number of advantages to renting rather than owning a condo, there are also several situations in which ownership might be the better choice for you, if you can afford it. These include: 

·       Long-term plans: if you are planning to settle down somewhere for a few years, then ownership might be a smarter choice in the long-run. Just like with any other type of accommodation, owning a condo means your money is going towards your equity, not the equity of a landlord. Plus, on a social level, ownership can better allow you to have a sense of community in the building. Typically, rentals run on one-year contracts, which can make it hard to have that sense of belonging if you are bouncing around between rental buildings. 

·       If you are looking to invest: Even if you are only planning on living in the condo for a short period of time, you could still keep it as a rental property in the future. Keep in mind that condo rentals often have stricter rental rules than apartments, so if you think you may want to use it as a rental property in the future, look into all those terms and conditions before you buy.

·       If you are looking to create your dream ‘home’: rental properties can be very restrictive on how you can decorate and design. After all, at the end of the day, it is someone else’s property. So, if you are someone who wants to customise the space, paint, and make big changes to create your ideal living space, then buying is a better option.

The choice is up to you

No matter whether you want to dip your toes into condo life by renting or you decide to buy your own place, be sure to get the right home insurance for you with Sonnet. Whether it’s condo insurance, tenant insurance, or insurance for landlords, Sonnet’s got you covered.

Hannah Logan is a Canadian travel writer who dreams of being just like Indiana Jones. You can follow her travels on her personal travel blog Eat Sleep Breathe Travel where she shares her travel tales and (mis)adventures around the world.

Hannah Logan is a paid spokesperson of Sonnet Insurance.